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A White Paper on the Reform of Australia's Tax System, due to be completed by the end of 2015, is to provide a longer term approach to tax reform that is consistent with the Government's core principles of fairness and simplicity. Against this background, the Government has already delivered a large number of other key tax priorities, including: repealing the Minerals Resource Rent Tax (MRRT) (September 2014) and the carbon pricing mechanism (July 2014); (...)

Over the review period the key focus of the Department of Infrastructure and Regional Development has involved implementation of the former Government's National Aviation Policy White Paper (released in 2009 ) and implementation of the Coalition's Policy for Aviation (released in 2013 ). The latter incorporates various measures designed to support the growth of the aviation industry, including: abolition of the carbon tax (sections 1.4.1, 3.4.1.2, and 4.3), (...)

(…) As indicated, the ACCC (Australian Competition and Consumer Commission) conducts formal price surveillance on aviation and airport services and facilities, fuel, electricity, telecommunications, postal services, and container stevedoring. Since 2011 only one new set of price monitoring has commenced; more specifically, on 24 February 2014, the Commonwealth Government directed the ACCC to monitor prices, costs and profits to assess the general effect of the carbon tax scheme in preparation for the carbon tax repeal in July 2014 (sections 3.4.1.3, 4.2.2.2, 4.3.2, and 4.3.2.1.3).

Australia's 2013 annual Tax Expenditures Statement (TES) identifies 355 (337 in 2009) tax expenditures by the Commonwealth Government to benefit a specified activity or class of taxpayer: 108 pertain directly to business income, 25 to commodities (e.g. fuel, alcohol, beer, wine, and tobacco) and other goods (e.g. luxury cars) or broadcasting activities, 13 to natural resources, 29 to GST, and eight to the Carbon Pricing Mechanism (2012/13, 2013/14), which was repealed on 1 July 2014. These tax expenditures are available to domestic and foreign firms; according to the authorities very few tax expenditures relate directly to production and/or trade of goods and/or services. (…)

(...) In 2014/15, the CPI is expected to remain well contained due to moderate wage pressures helping to keep unit labour costs down and the repeal of the carbon tax (sections 1.4.1, 3.4.1.2, 4.3.1, and 4.3.2) which is likely to reduce the headline CPI by three-quarters of a percentage point by June 2015.

Under its Carbon Farming Futures Program (2011-2017), Australia has implemented a Filling the Research Gap, Action on the Ground, Extension and Outreach Program, and related offset incentives.[38] In line with its commitment to repeal the Carbon Tax (sections 3.4.1.3 and 3.4.3.2), the Commonwealth Government has reviewed funding arrangements related to the Carbon Tax, made the necessary adjustments to associated programmes and did not proceed with any new projects under the Carbon Farming Futures programme. Through its Direct Action Plan, the Government will introduce a mix of new policies, including the Emissions Reduction Fund to provide ongoing opportunities for farmers and land-managers to participate in emission reduction projects with a bill on the Emissions Reduction Fund being introduced in June 2014.

[38] The Filling the Research Gap program was to expend $A 47 million on 57 projects in research areas including "reducing methane emissions (from livestock and manure), reducing nitrous oxide emissions (from fertilisers and soils), and increasing soil carbon and improving modelling capability". The Conservation Tillage Refundable Tax Offset is a refundable tax offset that primary producers could claim if they brought a no-till seeder. The Offset was worth 15% of the cost of the no-till seeder. The refundable tax offset was designed to encourage the uptake of conservation tillage practices to reduce emissions, increase soil carbon and improve productivity (Australian Taxation Office online information. Viewed at: https://www.ato.gov.au/Business/Primary-producers/In-detail/Other-rebates---deductions/Conservation-tillage-refundable-tax-offset). Under the Action on the Ground funding programme, farmers and land managers undertake on farm trials of abatement technologies, practices and management strategies to measure and demonstrate how they can reduce agricultural greenhouse gas emissions of methane and nitrous oxide or increase the sequestration of carbon in soil while maintaining or improving farm productivity. By March 2014, 89 multi-year grants worth up to $A 44.29 million had received funding; these projects were trialling a diverse range of on farm practices and management strategies, on more than 530 properties across the country. By April 2013, 24 projects valued at $A 21.3 million were funded under the Extension and Outreach program supporting sector specific projects, including the livestock, dairy, horticulture, cotton and grains industries (Department of Agriculture online information. Viewed at: http://www.daff.gov.au/about/current-grants; and Productivity Commission, 2013d).

Since late 2011, a Carbon Farming Initiative (CFI), a voluntary carbon offset scheme, has allowed farmers and land-managers to earn carbon credits (Australian Carbon Credit Units (ACCUs)) by reducing greenhouse gas emissions and storing carbon in vegetation and soils through changes to agricultural and land-management practices (also known as carbon farming). Credits can be sold into the voluntary carbon offset market or to offset liabilities under the 2012 carbon-pricing mechanism, repealed with effect from 1 July 2014 (section 3.4.1.3). This could create additional income for participants in the initiative. According to the authorities, the cost of removal of the carbon tax was estimated to be $A 13.7 billion on a fiscal balance basis ; savings from compensation measures associated with the repeal would result in a net budget impact of $A 6.9 billion. On 24 November 2014, the Carbon Farming Initiative Amendment Bill 2014 was passed by the Parliament; it is to expand, inter alia, its coverage and enable the Clean Energy Regulator to issued credits for emissions reduction projects from across the economy.

(…) Budgetary assistance to the electricity, gas, water, and waste services industries was the highest among all sectors. (…)

(…) Budgetary assistance for the electricity, gas, water and waste services industry was the highest among all sectors. (…)

Table 1.2 Basic economic indicators, 2009/10-2013/14
2009/10 2010/11 2011/12 2012/13 2013/14
(Annual percentage change)
Share of sector in total employment[c]
Electricity, gas, water, and waste services 1.3 1.3 1.3 1.3 ..